Report Title:

Agriculture appropriation.

 

Description:

Creates a dairy and egg farm revitalization and food security program.  Appropriates $3.3 million in each year of the fiscal biennium.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1221

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO AGRICULTURE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The cost of feed for livestock production in Hawaii can comprise up to seventy per cent of total production costs versus close to fifty per cent for mainland producers.  Within the past year, two egg farms and one dairy farm have gone out of business due to production cost increases largely attributed to the rising cost of feed for livestock animals.  Currently, another dairy farm and another egg farm are threatened by closure.  Such closures increase the State's dependence on imported foods.

     Closure of local dairies and egg farms also means that children and adults throughout the State will no longer have the option of selecting fresher, locally produced milk and eggs. 

     This Act will create a dairy and egg farm revitalization and food security program to administer and disburse funds to qualified dairy and egg farms who apply for and receive, if properly documented, a reimbursement for up to fifty percent of each farm's feed expenses.  Feed expenses shall not include the cost of transportation to Hawaii.  The maximum amount of feed expenses for each farm shall not exceed fifty per cent of feed expenditures incurred in 2006.  This financial support will serve a public purpose by enabling the dairy and egg industries to stabilize their operating costs.

     Milk and eggs provide essential nutritional needs to consumers.  The perishability of these food products make these products susceptible to spoilage, which can cause food-borne illnesses to the consuming public.  Without these local industries, all milk and eggs would need to be imported into the State, incurring up to ten days of shipping before being offered to the consumers.  Increased shipping time decreases the expected shelf life of fresh milk and eggs.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $3,300,000, or so much thereof as may be necessary for fiscal year 2008-2009, and the sum of $3,300,000 or so much thereof as may be necessary for fiscal year 2009-2010, to be disbursed to qualified producers of milk and eggs for the cost of feed for dairy cows or egg laying hens, and for the administrative costs of the program.

     The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

     SECTION 3.  As used in this Act:

     "Administrative costs" means costs associated with reviewing, approving and recording expenditures and completing any reporting requirements associated with the grant program.  "Administrative costs" shall not exceed .3 percent in any year within the two year period.

     "Qualified producer" means any individual or organization that at the time of application for and disbursement of funds under this Act is in the business of producing milk from a herd, located in Hawaii, of not less than fifty cows, or producing eggs from a flock, located in Hawaii, of not less than 3,000 birds.

     "Eggs" means chicken eggs, uncooked in shell.

     "Milk" means the lacteal secretion, practically free from colostrums, obtained by the milking of healthy cows normally produced or marketed through the channels of the fluid milk trade.

     SECTION 4.  Funds shall be disbursed, subject to review and approval after submittal of an application accompanied by documentation of costs of animal feed for dairy cows or egg laying hens.

     SECTION 5.  This Act shall take effect on July 1, 2007.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST